Mumbai: Larsen & Toubro, India's top construction and engineering company, said it expects sustained revenue growth in the medium term on a strong order book and economic reforms attracting capital inflows after its quarterly profit met street estimates.
The engineering conglomerate said net profit rose 15.8 per cent to Rs 864 crore in April-June from a year earlier as it won major contracts in the infrastructure and power sectors. Sales rose 26 per cent to Rs 1,1956 crore.
"Some of the sectors in which we operate, especially transportation and buildings and factories, have seen some momentum," Chief Financial Officer R. Shankar Raman told reporters on Monday.
"Also there is some spillover of orders from Q4 (Jan-March) that we realised in this quarter."
The company's order book, which indicates its outlook, stood at Rs 1,53,000 crore at the end of June, up 11.7 per cent from year ago. L&T said it won new orders worth Rs 19,594 crore in April-June.
The order book had fallen 12 per cent in the fiscal year ended March, when a sharp slowdown in the economy hurt investment activity.
The company had forecast in May a 15-20 per cent growth both in revenue and orders during the current fiscal year ending March 2013.
India's nearly $2 trillion economy grew just 5.3 per cent in the March quarter, the weakest annual pace in nine years, compared with the 9.2 per cent growth in the year-ago period.
L&T, whose projects include the Rs 1,6400 crore metro rail project in Hyderabad, said its key engineering and construction segment contributed 87 per cent to the revenue during June quarter. About 80.5 per cent of the operating profit came from this segment.
Select international markets in the Middle East, South East Asia and Commonwealth of Independent States (CIS) countries hold promising prospects, where the company is strengthening its presence, it said.
Shares in the company, valued by the market at Rs 85192.8 crore, gained 38.5 per cent since January, while the BSE Sensex gained 10 per cent during the same period.
L&T shares closed about 1 per cent down at Rs 1,376.75 , while the broader Mumbai market lost 1.67 per cent.
Copyright @Thomson Reuters 2012
The engineering conglomerate said net profit rose 15.8 per cent to Rs 864 crore in April-June from a year earlier as it won major contracts in the infrastructure and power sectors. Sales rose 26 per cent to Rs 1,1956 crore.
"Some of the sectors in which we operate, especially transportation and buildings and factories, have seen some momentum," Chief Financial Officer R. Shankar Raman told reporters on Monday.
"Also there is some spillover of orders from Q4 (Jan-March) that we realised in this quarter."
The company's order book, which indicates its outlook, stood at Rs 1,53,000 crore at the end of June, up 11.7 per cent from year ago. L&T said it won new orders worth Rs 19,594 crore in April-June.
The order book had fallen 12 per cent in the fiscal year ended March, when a sharp slowdown in the economy hurt investment activity.
The company had forecast in May a 15-20 per cent growth both in revenue and orders during the current fiscal year ending March 2013.
India's nearly $2 trillion economy grew just 5.3 per cent in the March quarter, the weakest annual pace in nine years, compared with the 9.2 per cent growth in the year-ago period.
L&T, whose projects include the Rs 1,6400 crore metro rail project in Hyderabad, said its key engineering and construction segment contributed 87 per cent to the revenue during June quarter. About 80.5 per cent of the operating profit came from this segment.
Select international markets in the Middle East, South East Asia and Commonwealth of Independent States (CIS) countries hold promising prospects, where the company is strengthening its presence, it said.
Shares in the company, valued by the market at Rs 85192.8 crore, gained 38.5 per cent since January, while the BSE Sensex gained 10 per cent during the same period.
L&T shares closed about 1 per cent down at Rs 1,376.75 , while the broader Mumbai market lost 1.67 per cent.
Copyright @Thomson Reuters 2012
